Join me, Jackie Ann Patterson, at the ultimate educational event for active traders. With LIVE trading demonstrations, engaging instruction, and plenty of proven, practical trading strategies direct from elite experts in every market, all traders will acquire necessary tools to make a profound positive impact on their consistency, confidence, and bottom-line results. Please see my tentative speaking schedule below.

Swing Trader’s Guide to Trailing Stop Losses and Profit Targets

Saturday, November 22 | 8:00 am – 9:00 am

Which is worse: watching a profit turn to a loss or letting the big one get away? Both scenarios can create enough agony to force traders to either adapt or leave the game. Fortunately techniques such as trailing stop losses and profit targets can help structure exit strategies to optimize performance and minimize regret. Come to this session to examine trailing stop losses and profit targets, assess their usefulness in terms of both historical performance and psychological value, and formulate exit rules to help you succeed as a trader.

Demo new software packages and cutting-edge tools for traders inside the state-of-the-art Exhibit Hall, where you can also ask questions and receive exclusive discounts from representatives of today’s leading product and service providers.

Win Great Prizes and Take Your Shot at the $50,000 Grand Prize

Attend for your chance to win the hottest tech gadgets like iPad Mini tablets, all-new trading tools, gift cards for leading retailers, and even a $50,000 cash prize!

And, instantly receive a FREE REPORT, “Trade Like a Pro in 5 Simple Steps” just for registering!

Join me, Jackie Ann Patterson, and 40+ world-class experts for what could be the single most important educational event this summer for active traders across all markets and time frames: the eTradingExpo, July 15-17. I will be speaking about:

As part of this one-of-a-kind virtual event, the pros will be covering reliable, range-based strategies and short-term momentum techniques that are simply vital for trading amid widespread record-low volatility.

Tune in LIVE to discover:

Viable long and short set-ups in stocks, indices, futures, and more

Diverse option strategies that can achieve steady income and growth

Clearly stated methods that can mitigate risk and maximize gains

Armed with timely insights and proven methods direct from truly elite traders, all who attend the eTradingExpo can become better equipped to exploit the highest-quality set-ups, both this summer and in challenging market conditions, well into the future.

Plus…register for the eTradingExpo and receive a FREE report, 5 Ways to Improve Your Trading.

Individual investors, particularly with a self-directed IRA, can take advantage of rotation strategies without putting in 10,000 hours to become a professional trader. Professional money-managers can apply these principals too — if they’ve let go of the assumption that they need to spent a 40-hour work week on the market.

How to Invest

The key to investment success is: Buy Low and Sell High. Easier said than done, of course. What trips many investors up is the notion that they need to buy at the extreme low and sell at the extreme high. Not so. It is really only necessary to buy lower than one sells most of the time, and control losses the rest of the time, to come out with a profit.

Therefore the most important thing is to identify a good investment as it is moving up, because it is the upward movement that produces the profits. Relative strength is one proven metric for finding investments moving up. A simple way to quantify relative strength is Rate of Change (RoC) which is just the percentage gain over a certain time period.

Investors should expect difficulty so it is considered wise to diversify their holdings. Being ready to switch to better prospects also increases an investor’s chance of coming up with profits, as demonstrated by the backtesting results for ETF rotation compared to buy-and-hold of a diversified portfolio.

What is an ETF

An Exchange Traded Fund or ETF is similar to a mutual fund in that the ETF holds a variety of stocks and the ETF’s value changes as the underlying stock prices fluctuate. ETFs may invest in stocks, bonds, commodities and futures. Most ETFs go up when their holdings go up. Some ETFs, called inverse funds, are designed to increase in price when their underlying index goes down. This gives investors a straightforward means to hedge their bets and short the market.

ETFs tend to be passive investment vehicles like index funds. An index fund is an ETF or mutual fund that tracks an index, such as the S&P 500, by investing in the component stocks in the index. It turns out that this approach of following an index often comes out ahead of active management strategies that attempt to pick winning stocks.

ETFs also exist that invest in international stock indices, which is great because us individual investors have little hope of becoming global stock-picking experts.

A Simple ETF Rotation Strategy

The steps to creating a simple ETF rotation strategy come in two parts: the background work to set it up and the on-going execution of the strategy.

For set-up, one needs to decide:

Type of account: Tax-Deferred (preferred) or Taxable.

Broker.

Pool of investment candidates, in this case a selection of ETFs that track various global and domestic stock and bond indices.

Selection criteria, such as high percentage gain or RoC.

How far back to measure the RoC to catch the trend of rising ETFs. Make it too short and the system will lose money by thrashing among funds that happened to have a good day. Make it too long and you will only rotate in after most of the profits are gone.

Number of funds to hold at any one given time.

How often to rotate, as in daily, weekly, monthly, annually.

Under what conditions to stand aside.

How often to rebalance.

For the on-going operation of an ETF Rotation strategy, the steps are:

Wait for the rotation day and do nothing in between. This is important!

On rotation day:

Check the RoC (percentage gain) of all the ETFs and single out the top performers with the best percentage gain.

If you already own the top funds, do nothing,

If one of your investments has fallen from the top, sell it and buy into highest performer that you don’t already own.

Bookmarks

Feeds

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

This website and all materials offered from it are publications intended for educational purposes, not investment advice, and not an offer to buy or sell securities. Trading and Investing always carry the risk of loss. Please carefully consider whether investing is right for you and consult your own licensed professionals for advice.

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